ELK CITY — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $1,850,000 low-interest drinking water construction loan to Elk City Water and Sewer Association, Inc, Idaho County.
The funding will be used to install a new storage tank, rehabilitate a secondary tank, remove an old tank, and install of new water treatment monitoring equipment.
DEQ is authorized by state law to make loans to assist in the construction of public drinking water systems. Since the annual cost of drinking water service for residential customers exceeds one and one-half percent of the median household income, Elk City Water and Sewer Association, Inc. qualifies for a disadvantaged loan which carries very favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, has $1,850,000 in principal forgiveness. The favorable loan terms represent a $3,066,962 savings to the community when compared to average costs for municipal general obligation debt issuances.